Meta Platforms (NASDAQ:META) Stock Price Down 1.9% – Should You Sell?

Meta Platforms, Inc. (NASDAQ:META)’s stock price dropped 1.9% during mid-day trading on Monday. The company traded as low as $627.80 and last traded at $630.56. Approximately 30,648,608 shares changed hands during mid-day trading, an increase of 73% from the average session volume of 17,734,307 shares. The stock had previously closed at $642.62.

More Meta Platforms News

Here are the key news stories impacting Meta Platforms this week:

• Positive Sentiment: Meta’s AI expansion could create new growth avenues. The company is investing in AI infrastructure, proprietary models, personal “superintelligence,” smart glasses and the Muse assistant, which analysts and Burke Wealth Management view as potential drivers of engagement, retention and future monetization. Meta’s $95 Billion AI Push Could Accelerate New Product Launches
• Positive Sentiment: Meta’s core advertising business remains strong. Recent quarterly results showed 26% year-over-year revenue growth and an earnings beat, while Facebook and Instagram engagement reportedly reached records. Some analysts argue the post-earnings selloff creates an attractive valuation opportunity, supported by AI-enhanced ad performance and billions of daily users. Meta Thrives, Despite Making Mistakes
• Neutral Sentiment: Meta is creating nonvoting Class C shares and has launched an offering of approximately $35 billion, with plans to raise as much as $95 billion overall. The structure is intended to preserve management control while financing AI investments, but its effect on existing shareholders will depend on the eventual size, pricing and use of the new shares. Meta announces $95 billion stock offering to fund AI expansion
• Negative Sentiment: The equity raise raises dilution concerns and signals that Meta’s AI buildout will require exceptionally large capital commitments. Investors are already uneasy about elevated capital expenditures, with full-year spending projected at $135 billion to $145 billion, potentially weighing on free cash flow and returns if monetization lags. Meta Will Offer Up to $95 Billion in Stock
• Negative Sentiment: Recent earnings were also affected by a roughly $9.9 billion litigation charge, adding to concerns about weaker headline profitability and the sustainability of Meta’s spending plans. As a result, investors are prioritizing funding, dilution and execution risks over the company’s strong current advertising performance. Meta: Strong Buy, But $95 Billion Raise Changes the Equation

Analyst Upgrades and Downgrades

META has been the subject of a number of recent research reports. Royal Bank Of Canada lifted their price target on shares of Meta Platforms from $770.00 to $800.00 and gave the stock an “outperform” rating in a report on Thursday. Raymond James Financial upped their price objective on shares of Meta Platforms from $650.00 to $860.00 and gave the company a “strong-buy” rating in a research note on Thursday, September 24th. Roth Capital lowered their target price on shares of Meta Platforms from $820.00 to $750.00 and set a “buy” rating for the company in a research note on Monday, August 3rd. Weiss Ratings upgraded Meta Platforms from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. Finally, Susquehanna increased their price target on Meta Platforms from $650.00 to $850.00 and gave the stock a “positive” rating in a research note on Thursday. Three research analysts have rated the stock with a Strong Buy rating, forty-seven have assigned a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $833.12.

Meta Platforms Stock Performance

The stock’s fifty day simple moving average is $664.40 and its two-hundred day simple moving average is $630.11. The company has a market cap of $1.61 trillion, a price-to-earnings ratio of 21.50, a price-to-earnings-growth ratio of 1.12 and a beta of 1.19. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.90 and a current ratio of 1.90.

Meta Platforms (NASDAQ:META) last issued its earnings results on Wednesday, October 21st. The social networking company reported $7.40 earnings per share for the quarter, topping the consensus estimate of $6.54 by $0.86. Meta Platforms had a return on equity of 30.73% and a net margin of 31.15%. The business had revenue of $64.60 billion for the quarter, compared to analyst estimates of $63.34 billion. During the same period last year, the company posted $7.25 EPS. The business’s quarterly revenue was up 26.1% on a year-over-year basis. Equities research analysts anticipate that Meta Platforms, Inc. will post 28.86 EPS for the current year.

Meta Platforms Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 28th. Stockholders of record on Monday, September 21st were paid a $0.5250 dividend. This represents a $2.10 annualized dividend and a dividend yield of 0.3%. The ex-dividend date of this dividend was Monday, September 21st. Meta Platforms’s payout ratio is currently 7.16%.

Insider Transactions at Meta Platforms

In related news, CEO Mark Zuckerberg sold 27,474 shares of the stock in a transaction that occurred on Thursday, September 24th. The shares were sold at an average price of $777.44, for a total transaction of $21,359,386.56. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Javier Olivan sold 946 shares of the firm’s stock in a transaction that occurred on Monday, October 19th. The shares were sold at an average price of $707.20, for a total transaction of $669,011.20. Following the completion of the transaction, the chief operating officer owned 5,986 shares in the company, valued at $4,233,299.20. The trade was a 13.65% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 148,440 shares of company stock worth $101,456,300. 13.53% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Meta Platforms

Several institutional investors and hedge funds have recently modified their holdings of the stock. National Wealth Management Group LLC grew its position in Meta Platforms by 0.5% in the third quarter. National Wealth Management Group LLC now owns 3,161 shares of the social networking company’s stock valued at $2,292,000 after acquiring an additional 17 shares in the last quarter. Aegis Wealth Management Inc. lifted its position in shares of Meta Platforms by 31.6% during the third quarter. Aegis Wealth Management Inc. now owns 629 shares of the social networking company’s stock worth $456,000 after purchasing an additional 151 shares in the last quarter. AGH Wealth Advisors LLC lifted its position in shares of Meta Platforms by 10.6% during the third quarter. AGH Wealth Advisors LLC now owns 3,785 shares of the social networking company’s stock worth $2,745,000 after purchasing an additional 363 shares in the last quarter. Patton Albertson Miller Group LLC boosted its stake in shares of Meta Platforms by 1.9% in the third quarter. Patton Albertson Miller Group LLC now owns 19,077 shares of the social networking company’s stock valued at $13,834,000 after purchasing an additional 347 shares during the period. Finally, Geneva Partners LLC boosted its stake in shares of Meta Platforms by 87.2% in the third quarter. Geneva Partners LLC now owns 17,615 shares of the social networking company’s stock valued at $12,774,000 after purchasing an additional 8,207 shares during the period. Hedge funds and other institutional investors own 79.91% of the company’s stock.

Meta Platforms Company Profile

Meta Platforms, Inc is a technology company that develops social networking, messaging, virtual and augmented reality, and artificial intelligence products. The company’s principal platforms include Facebook, Instagram, Messenger, WhatsApp, and Threads, which enable users to connect, communicate, share content, and discover products and services.

Meta also operates Reality Labs, its division focused on virtual, augmented, and mixed reality technologies. Reality Labs develops products such as Meta Quest virtual reality headsets and related software and experiences, along with research and hardware intended to support immersive computing.